Steinhoff shares hit all-time low as it cuts stake in STAR
Scandal-hit company seen as likely to sell more to refinance debt
Steinhoff International continues to bleed, with shares in the one-time retail favourite falling to their lowest levels in a week in which the disgraced company said it was reducing its stake in its crown jewel, Steinhoff Africa Retail, to boost its finances. The sale raised about R3.5-billion and constituted 6% of the subsidiary's shares. It left the Dutch-based retailer with just more than 71% interest in the owner of PEP and Ackermans stores. But given the woes experienced by the company in the wake of the accounting scandal that broke in December and saw billions wiped off its valuation, market analysts expect Steinhoff to sell more of its stake to refinance its debt. "It's almost inevitable that Steinhoff would sell more shares than what they have currently put to the market," said Zwelakhe Mnguni, the chief investment officer at Benguela Global Investments."It's a start and they'll probably have to sell more, but the working capital requirements are heightened." This week, Ste...
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